An Investing in Space Overview and Strategy

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SPACE COMMERCE PRESENTATION 2016

Scope of this Presentation

The following presentation is an overview of Space Commerce in 2016. This analysis was performed with diligence by Space Ventures Investors Ltd. Copyright This Report is the copyright Space Ventures Investors Ltd 2016. Any unauthorised reproduction or usage by any person other than the addressee is strictly prohibited.

Limitations This document and any analysis, opinions, results, evaluations or recommendations herein or accompanying it, was prepared by Space Ventures Investors for the sole use of showing to potential space investors an overview of space commerce, a strategy for investing in space commerce.

Any statements made that are not historical fact are based on data and information provided by others. Space Ventures Investors has not verified the accuracy of any such data and information unless otherwise specified. This presentation may contain forward-looking statements regarding future events such as ‘forecast’, ‘expect’, ‘believe’, ‘estimate’, ‘anticipate’, ‘will’, ‘could’, ‘may’ or ‘might’ and the negative of such terms or similar expressions. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future and that are beyond the control of Space Ventures Investors.

We caution you that forward-looking statements are not guarantees of future performance. No allowance has been made for changes in government policy or regulation; economic performance; price; taxation; company failure; strategic change; ownership change; or other external factors that could cause actual results to differ materially from those shown in the presentation.

The information contained in the presentation was finalised on October 30th 2016.

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Table of Contents

Space Commerce Overview 04

Investing in Space Strategies 10

Looking Forward 17

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SPACE COMMERCE OVERVIEW

Space and its Business Environment: The Space Commerce Growth Story

HNW Investors in Space Commerce

Sources of Investment in Space Start-ups

2015 Space Investors

Space Commerce Road Map: Private Space Companies

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The Space Commerce Growth Story

Space continues to gain momentum Volatile geopolitical events (conflict = more surveillance

assets) and extreme weather (disaster = more surveillance, rescue, monitoring assets) are positive for Space Commerce…

When volatility becomes political it gets better budgets. Competition among Aerospace, Private Space Players

and Superpowers to meet existing demand is a driver of innovation

Space Investors want to be part of this industry, innovative solutions will bring them onboard

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HNW Investors in Space Commerce

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Elon Musk

Richard Branson

James Cameron

Larry Page

Space Tourism

Asteroid Mining and Private Space Telescopes Space Transport

Paul Allen

Jeff Bezos

Highly Successful Entrepreneurs are Committed to Space…

The Source of Capital for Investments in Space Start-Ups is Growing…

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Source: Start Up Space – Tauri Group

Magnitude of Investment in Start-Up Space Ventures 2000 to 2015. Key Points Capital is moving in to

space as more opportunities are now available.

$13.3bn invested in Space-Start-ups since 2000.

Space start-ups are an emerging and growing field - Their business models and technology must be transparent to attract a wider variety of investors.

2015 flow of Venture Capital into space is a major shift - VC is leaving one area and investing in space.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Debt Financing Public Offering Acquisition Private Equity Ventures Seeds / Prizes / Grant

“The next 7 years will have the same amount of change as the last 50.” –Silicon Valley investor

US$m

Overview of 2015: Increased Investment in Space

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Source: Space Angels Network

Early Stage: ~$700 million VC and Angel Investments in 2015 Key Points In 2015 approximately 70

venture capital firms invested in one or more private space ventures.

This is approximately four times the number of firms that invested in 2014.

2011 to 2015 growth of early-stage investors is continuing.

Once the fully funded categories of Launch & Transport and Satellites are operational, then funds will chase the next opportunities: Space Resources, Small Satellites and Space Energy – all three compliment each other.

-

200

400

600

800

1,000

2011 2012 2013 2014 2015

Space Energy Space Resources Human Spaceflight

Habitats & Real Estate Satelites Launch and Transport

$m

Rating

Mars

Asteroids

Lunar / Moon Operations

Geosynchr-onous

Orbital

Low Earth Orbit

Sub-Orbital

Earth

Communication Transportation Space Infrastructure

Global Internet

Space Tourism

Bases and Habitats

Resources Colonies

Examples: Satellites: Mass Communication

and Media

Launch Facilities, Rockets,

Spacecraft

Parts and technology

Satellites: Broadband

HNW Space Tourism

Mining, Energy, Solar etc

Speculative Colonies

Space Commerce Road Map: Private Space Companies

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Funded, but not yet Operational Established Businesses Key:

Risk-Off Risk-On DIY DD1

1. Do It Yourself Due Diligence

INVESTING IN SPACE STRATEGIES

Focussing on the Size and Strategies: Common Investing in Space Dangers…

Historical Precedents for Large Investments

Public vs. Privately Funded Trade-Offs

The Rocket Showdown Continues

Old vs. New Space Verticals

Build a Balanced Space Portfolio

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Common Investing in Space Dangers…

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The Billionaire is Just A Brand Know What Can Will Go Wrong

The Legalities might be harder than the hard Science

Mainstream Media is 50% Sci-Fi

Historical Precedents for Large Investments

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Key Points Raising funding for large

exploration ventures was more ‘normal’ in previous eras of Western Civilisation

Many space ventures require massive investments to be operational

As time goes on, more people want to invest in space related companies

History shows, there will always be Entrepreneurs undertaking capital-intensive and high-risk ventures, leveraging technology to their advantage.

"We shouldn't only be mining the Earth, we should be thinking of the Moon as our eighth continent." Naveen Jain, Co-founder and Chairman of Moon Express Source: http://www.wired.co.uk/news/archive/2016-01/05/space-mining-a-reality-in-2016

History: 15th – 19th Century Now: 21st Century

First Level Exploration

Typically from Monarchs (Kings, Queens) increasing their Empire

Typically from Governments, e.g. Cold War

Transport Ships had been under development for over 2,000 years

Launch and remote vehicles have been around 50+ years.

Technology ‘Guns, Germs and Steel’ gave small Western Armies massive leverage over indigenous populations

Scaled-down computer hardware, increased computing power, robotics, 3D-Printing and communications make it easier to plan remote operations

The Entrepreneur

Trade in spices, materials and labour was massive

Merchants often were at the forefront of exploration, seeking new trade routes.

Dutch East India company the first to issues shares.

There is increasing awareness in space commerce, meaning more investors will ‘come to the party’

This broadens the investor base and supports existing ventures in need to bridging capital

Public vs. Privately Funded Trade-Offs

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There is a clear division between Public and Private space related companies

Private Investors (mainly Venture Capital and Sovereign Wealth Funds) are funding Private Space Companies, which are ‘high-risk’ for various reasons

Risk Reward

Retail and Institutional Investors back Public Aerospace Companies; they follow the same analysis, can be part of the “herd”

Liquidity: Easy to enter, easy to exit

Dividends Trade on Stock Price Volatility

Multiples of 100 are the prime goals of VCs

First mover advantage

Public Companies

Private Companies

The Rocket Showdown

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Lack of Heavy lift rocket capabilities has led to the space industry coming to the cross roads; Government (and the Public Aerospace companies that benefit as contractors ) vs. Private Space Companies

First new heavy lift rockets in over twenty years are enter testing phases Will government or privately designed rockets be more efficient? 2016 will be the first year to truly showcase how the privatized space

industry can spend less and do more

Cost: $32bn Bloc 1 Lift: 70 Metric Tons Max Lift:130 Metric Tons Cost Per launch: $500m

Space Launch System

Cost: Estimated $3bn Lift: 53+ Metric Tons Cost Per Launch: $90m

Falcon 9 Heavy

Old vs. New Space Verticals

Industry Years in operation

Government Funded?

Commercial Applications

Satellites 50+ Yes Communication, Navigational, Military etc

Yes Military, Media, GPS etc.

Rockets & Delivery Systems

50+

Yes Space programs

Yes Numerous and growing

Space Debris In planning Possible Legislation may require debris removal

Yes Grows in line with space activity

Space Tourism Estimated 2018 No Strictly Commercial

Yes Wealthy Customers

Space Resources Estimated 2020-2025

No, but agency state sponsored missions can not be ruled out, e.g. ESA wants a Moon Base

Yes Precious Metals, Water, Energy

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Funding Space Commerce: The Solution is to Build a Balanced Portfolio

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Space Resources: Asteroid &

Lunar Mining

Space Tourism Space Tech

Satellites

A balanced (risk minimized) space commerce portfolio is achievable but requires scale

Competition among space companies will lead to mergers, spin-offs etc.

LOOKING FORWARD

Upcoming Space Commerce Themes

Negative for Space Commerce

Fast Forward 5+ Years

Fast Forward 10+ Years

Fast Forward 20+ Years

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Upcoming Space Commerce Themes

Private Space Companies will provide cheaper access to space, via re-usable rockets and sub-orbital flights

Following the current progress of technology enables a clearer view of what is actually possible and what is not; Search the Signal from the Noise

Space Commerce will see jumps and set-backs in-line with global macro events; Global conflict & recessions, and political and social movements

Mainstream Media (MSM) acceptance that Space is a viable reality and not Science Fiction / Just Another Government Funded Project

But MSM loves SpaceX failures (launch pad mystery explosion) and fanfare (plans for Mars)

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Negative for Space Commerce (Revised from our Space Commerce 2015 Presentation)

Global Economics: Mis-management of Western (e.g. G7) Economic Policy

to offset demographic slow-downs may increase the political motivation to

‘boost healthcare / welfare for baby-boomers’ rather than ‘explore the stars’.

Benign ‘Space Critics’: Social Movements that become Political and Ultra

Eco-Friendly Activism can easily become anti-space, e.g. An argument to

Feed the Poor / Save the Ecosystem vs. Colonize Mars.

Catastrophic Space Related Accidents: The loss of lives, including in

space tourism, will scale-back achievements and milestones.

Monopolies Defending Market Share: Space based technologies will

impact on earth-based industries, therefore current monopolies will defend

their market share by keeping space technologies ‘out of reach’; including

negative PR campaigns and disinformation.

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Fast Forward

Global Internet Coverage: Competition and consolidation begins. Space Debris: Commercial Players & Start-ups seek investment. Space Tourism: Virgin Galactic Space, XCOR, or Zero2Infinity have

clearance to begin taking tourists to space: Sub-Orbital only. Transport: Space-X and ULA will officially be carrying human cargo to

the ISS under current contract schedules. Launch Costs: Reusable rockets that Space-X has been testing will be

successful under current schedules, driving down the cost of launches Habitation: Bigelow Aerospace B330 manned space habitat

operational. Competitors seek R&D funding. Space Resources / Asteroid mining prospectors roll-out and test

hardware to prove their business models. NASA’s Orion space craft will also finish testing one of the first

manned missions to Mars by a country. Other official Mars mission plans will be unveiled by private ventures,

with timelines for launch within the next ten years. Back to the Moon is back in vogue, possible ESA plans for a base.

Medium High

Medium

Medium

High

Medium

Low

Low

Medium

Space Commerce Vertical Commercial Risk

Years 5+ 20+ 10+

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High

Fast Forward

Global Internet online after the launch of swarms of new satellites and mergers of operators.

Space Debris: Possibly enforced by law, activity becomes constant. Space Tourism, sub-orbital a real business, and orbital to manned

stations in a business model to invest in. Space Resources / Asteroid mining: Scouting missions complete and

the first samples/ minerals returned to earth. Alternative Propulsion: Testing of plasma rockets and fusion energy

should also be completed, leading to the designing of space craft that can go greater distances then previously imagined.

Mars: SpaceX and NASA co possibly on their way to Mars, opening the door for more downstream technology transfers.

Space Elevators: Plans drawn for carbon nanotube space elevator; enabling access to space without rockets, lowering costs and enabling the building of ships in space; practical for interplanetary travel.

Years

Space Commerce Vertical Commercial Risk

Medium

Medium

Medium

Very High

Medium

High

5+

Low

20+ 10+

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Fast Forward

Global Internet: The cost of global internet coverage is now minimal. Space Debris: An established and regulated industry open to tenders. Space Tourism: First space hotel likely to be established. A consortium

of tourism and aerospace companies become market leaders. Space Resources / Asteroid mining: Operations are online, freeing

water and energy from locations like the Moon. Mars: A Mars Colony established but small, commercial activity

between Earth begins, and plans drawn for eventual terra-forming. Mars Space Elevator Plans: In planning. Earth Space Elevator Plans: Depending on technology,

may be in planning stages. Space Based Agriculture becomes a concept that may help feed the

billions of humans on Earth, and Martian Colonies. Lunar Tourism: A viable industry, possibly in conjunction with a

commercial Moon Base.

Medium

Low

High

Medium

High

No Risk

Medium

Low

Low

Space Commerce Vertical Commercial Risk

Years 5+ 20+ 10+

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Space Ventures Investors Team

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Team Members Corporate Information

Kevin Mac Gowan

Co-Founder & Partner

Business Development DACH and France

Frankfurt, Germany

Co-Founder & Partner

Business Development UK and Rest of World

London and Frankfurt

Simon Drake (MD)

Management

Freelancers

Space Ventures Investors Limited Company Number: 09340453 Registered in England, United Kingdom

Postal Address: Postfach 600754 60337 Frankfurt am Main Germany

Registered Address: 207 Regent Street London’ W1B 3HH United Kingdom

SVI Anonymous Team

Legal (UK) Various Interns,

Researchers

Aerospace Financing

(UK)

Space Commerce Analyst

Business Development North America

Washington DC, USA

Brad Lewis

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